At the meeting the Head of State has been presented a report on the activity results of Kazakhstan’s National Bank for 2016 and plans for the forthcoming period.
Alikhan Smailov, Assistant to the President of Kazakhstan on social and economic issues, Daniyar Akishev, the National Bank Chairman, Timur Suleimenov, National Economy Minister, Bakhyt Sultanov, Finance Minister and the National Bank Deputy Chairmen were the meeting members.
Nursultan Nazarbayev in general noted the National Bank’s stable operation and the country’s financial system in the conditions of the world economic crisis.
- "Third Modernization of Kazakhstan: Global Competitiveness" Address tasks the Government and the National Bank to join the 30 developed countries of the world. For that it is necessary to follow the successful examples of some world countries, in particular, South Korea. At the same time, a gradual decline in inflation should occur at the level of 3-4%, the President of Kazakhstan said.
The Head of State has placed a greater focus on the existing systemic risks in the financial sector, which threaten stability, and laid emphasis on the national economy’s inadequate pace of development.
- It is necessary to adopt a set of measures aimed at macroeconomic stability, improving the banking sector and developing the stock market to address the issue. The National Bank has a key role in implementing the tasks set, Nursultan Nazarbayev said.
As Daniyar Akishev said, according to the results of 2016 inflation had decreased from 13.6% to 8.5%. This March the figure is 7.7%.
- By the end of 2017, inflation is expected at 7%, with a further decline in 2018. Inflation rates are slowing down. There are minor fluctuations in the exchange rate. At the same time, it fully reacts to the fundamental factor. It should be noted that there have been no interventions from the National Bank since September last year, the National Bank Chairman said.
The President of Kazakhstan was informed about the record inflow of foreign investments in the amount of $ 14 billion and the reduction of the country's foreign debt.
Daniyar Akishev reported to the Head of State on the status of the National Bank reserves and the National Bank fund, monetary policy implementation, state of foreign exchange market, banking sector and the stock market development, the IAPF (Integrated Accumulative Pension Fund) activities, digitization of banking services, and new challenges in that area.
- It is necessary to accelerate the process of taking comprehensive measures to improve the country’s banking sector. If necessary, shareholders must capitalize their banks with real money. They should be focused on consolidation of weak banks as well, Nursultan Nazarbayev said.
The President of Kazakhstan highlighted the actualization program for refinancing of troubled mortgage loans, noting the importance of increasing the financial responsibility of citizens.
At the end of the meeting, the Head of State approved Daniyar Akishev’s report and gave a number of specific instructions.
- The Government and the National Bank are entrusted to formulate coordinated actions to solve previously set tasks: to go through a clear operating procedure under different scenarios of rate change taking into account past domestic and international practice, to develop measures for increasing time deposits for increasing long-term lending to the economy and to intensify work on the stock market development and make proposals addressing the problems of currency and mortgage borrowers, Nursultan Nazarbayev said.
